In a bid to address the issue of hoarding US dollars, the State Bank of Pakistan (SBP) has put forth a new plan that would require biometric verification for individuals purchasing $500 and above from exchange companies. This move is part of a larger effort to implement comprehensive reforms in the exchange companies sector.
Recognizing the need to regulate the flow of US dollars in the country, the SBP has also made changes to the limits on US dollar purchases for travel purposes. The previous limit of $10,000 has been reduced to $5,000, while the annual limit has been lowered from $60,000 to $30,000. These adjustments aim to discourage excessive accumulation of US dollars and promote responsible currency management.
Furthermore, the SBP has introduced a requirement for individuals purchasing $2,000 or more from exchange companies to make payments from their Pakistani Rupee accounts. This measure aims to ensure transparency and accountability in foreign currency transactions, discouraging the use of unauthorized channels for such exchanges.
To effectively enforce these new regulations and crack down on illegal foreign exchange operators, the SBP intends to collaborate with the Federal Investigation Agency. This partnership will enable the authorities to identify and take action against those involved in illicit foreign currency activities, safeguarding the integrity of the financial system.
The implementation of biometric verification for US dollar purchases above $500 is a significant step towards curbing hoarding and promoting responsible currency exchange practices. By linking transactions to individuals’ biometric data, the SBP aims to create a more secure and traceable system. This will not only deter hoarding but also help identify any suspicious or unauthorized activities.
The SBP’s comprehensive reforms in the exchange companies sector are intended to foster a more transparent and efficient foreign currency market. By reducing the limits on US dollar purchases for travel purposes, the SBP aims to discourage unnecessary accumulation of foreign currency, ensuring that individuals only acquire what they genuinely require for their travel needs.
The requirement to make payments from Pakistani Rupee accounts for large US dollar transactions further strengthens accountability and transparency. This measure ensures that individuals are using authorized channels for foreign currency exchanges, preventing the misuse of funds and reducing the risk of illegal activities.
Collaborating with the Federal Investigation Agency will enhance the SBP’s efforts to combat illegal foreign exchange operators. By working together, the SBP and the Federal Investigation Agency can identify and take action against those involved in unauthorized currency exchanges, protecting the interests of the public and maintaining the integrity of the financial system.
In conclusion, the State Bank of Pakistan’s proposal to implement biometric verification for US dollar purchases above $500, along with other reforms in the exchange companies sector, demonstrates a commitment to curbing hoarding and promoting responsible currency management. These measures aim to create a more transparent and secure foreign currency market, ensuring that individuals comply with regulations and use authorized channels for currency exchanges. By collaborating with the Federal Investigation Agency, the SBP aims to effectively enforce these regulations and crack down on illegal foreign exchange operators.